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Bolivia announces reforms amid protests

LA PAZ, Bolivia, June 3 (UPI) -- Bolivian President Carlos Mesa has announced the government will adopt several reforms and rewrite the constitution.

Mesa said the constitution would be overhauled in October and a national referendum held on whether to grant Bolivia's gas-rich provinces more autonomy, La Razon reported Friday.

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The gas issue has been a flashpoint in the troubled South American country for weeks, prompting protests that have crippled the capital and much of the country.

Last month, lawmakers approved a controversial bill drastically increasing taxes on foreign-owned oil and gas companies.

Many protesters and the country's hard-line opposition, say the measure is insufficient and total nationalization of the industry is in the best interest of the Bolivian people.

Although opposed to it, Mesa allowed the bill to pass hoping it would quell protests that have gripped the capital for the last two weeks.

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